Beware getting help with your Water Bill

poppasmurf_bewdley

This is long winded, but very important, so don't be put off.

Two years ago (2022), I received information from Severn Trent Water about their Big Difference Scheme, and inviting me to apply.  I said it was for people who are on benefits or a low income.

Now let me say at the outset, I'm a pensioner and only receive the state pension, albeit SERPs does take my pension above the standard amount.

I'm not in debt, owe nothing to nobody, and by watching my pennies I get by.  This Big Difference Scheme seemed as though it was for someone like me, so I applied and got accepted.  It took about £120 off my £300 annual water bill.  

All was well until until this summer. I was on holiday and spent something and paid with my Barclaycard.  I was amazed to then receive a text from Barclaycard saying I was approaching my credit limit, which amazed me as I had a £4,500 credit limit. On getting back, I found that my Barclaycard credit limit had been lowered to £500.

I immediately rang Barclaycard, and to cut a long story short, they told me they had written to me about the credit limit and it had been done because my credit file had been adversely marked, but they wouldn't tell me by who.

I then checked my Credit File, and found that Severn Trent Water had marked my account as 'being in an arrangement' which to anybody in finance is a very big no no.

I then rang Severn Trent, and after a very long call, I spoke to someone who said (and I quote) "Yes, we do that if you're on The Big Difference Scheme as you have difficulty paying your bills. I calmly explained to the young man that I had applied for their scheme as it was advertised as being for people on low income, not to people having trouble paying their bills. It transpired that I had applied via an outside agency ST Water had employed to get the scheme off the ground, and everything was different now.

Anyway, I withdrew from The Big Difference Scheme and ST Water actually had the audacity to bill me for the difference between the full bill and the reduced bill - £120.  I told them I'd see them in court and they withdrew their demand.

Now ST Water on my Credit File is back to normal, but I'm still trying to get Barclaycard to return my £4,500 credit limit.

All in all, a nightmare that may serve as a warning to others.  Apply for help and they mark your Credit File. 

Brie

fyi - barclaycard have been very strict over the last 5 years or so and lowered credit limits.  Mine went from nearly £20k to about £1500 for no apparent reason that I could see.  

You might try telling BC that you need to purchase something - a new to you car or whatever - and see if they will increase your limit again.  If they don't apply elsewhere.  They seem to be stricter than other lenders.

fatbelly

This won't be welcome news to all the Tesco credit card holders who are about to be switched to Barclaycard

M25

Barclaycard aren't going to give you the credit limit back. Make sure you have your account set to have automatic increases if that option is there but even then it would be a slow process.

I think it's up to you to check what you sign up for in future but it's a good warning to others.

Muttleythefrog

This is quite a troubling possibility.... are they even warning about it? 

As above... a useful warning...

Regarding Barclaycard... interestingly my wife can't get more than a £200 limit.. I'm up to £8000 after multiple requested rises.... yet until the last week our finances have essentially been joined. I can't figure it out... our credit ratings are pretty similar... but the nonsense companies put in for her name details on the credit reference records can't help.  

HillStreetBlues

Brie said:

fyi - barclaycard have been very strict over the last 5 years or so and lowered credit limits.  Mine went from nearly £20k to about £1500 for no apparent reason that I could see.  

You might try telling BC that you need to purchase something - a new to you car or whatever - and see if they will increase your limit again.  If they don't apply elsewhere.  They seem to be stricter than other lenders.

How much of the £20k credit did you actually use?

poppasmurf_bewdley

M25 said:

Barclaycard aren't going to give you the credit limit back. Make sure you have your account set to have automatic increases if that option is there but even then it would be a slow process.

I think it's up to you to check what you sign up for in future but it's a good warning to others.

The ironic point is that I've had the Barclaycard for 24 years, and it started out with a £500 credit limit, and it's been Barclaycard who have increased it to £4500 without me asking once. 

I have 3 other credit cards, all with decent credit limits, but what annoyed me was that I'd just started a four week holiday when they reduced my limit, and if I'd been depending on that card to finance the holiday, I'd have been up the creek without the proverbial paddle! 

kaMelo

Barclays have been slashing credit limits on their credit card for many people, there was a full thread on the subject a while ago. After being hit with a large fine from the FCA for failing to look after customers in financial difficulty, it's not really a surprise they are preventing people in financial difficulty getting any further into debt by reducing credit limits.

To be fair to Severn Trent, the website is pretty clear that The Big Difference Scheme is an arrangement to pay plan and your credit file will be marked appropriately.

https://bigdiff.co.uk/login.php
The Big Difference Scheme is a non-standard payment arrangement to help those who need assistance with their water charges. If accepted onto this scheme Severn Trent Water will share information with credit reference agencies, and this could influence your credit status.

HillStreetBlues

kaMelo said:

To be fair to Severn Trent, the website is pretty clear that The Big Difference Scheme is an arrangement to pay plan and your credit file will be marked appropriately.

https://bigdiff.co.uk/login.php
The Big Difference Scheme is a non-standard payment arrangement to help those who need assistance with their water charges. If accepted onto this scheme Severn Trent Water will share information with credit reference agencies, and this could influence your credit status.

Although they do state it for me it's totally wrong. It's like they can say they offer help but that "help" can cause other issues.
Phone/internet have cheaper tariffs for those on certain benefits, should that be reported? or someone gets a discount with Sky, should that be reported?
To treat someone who might have never been in debt but is a low income the same and someone who might have raked up debt is disgraceful

kaMelo

HillStreetBlues said:

kaMelo said:

To be fair to Severn Trent, the website is pretty clear that The Big Difference Scheme is an arrangement to pay plan and your credit file will be marked appropriately.

https://bigdiff.co.uk/login.php
The Big Difference Scheme is a non-standard payment arrangement to help those who need assistance with their water charges. If accepted onto this scheme Severn Trent Water will share information with credit reference agencies, and this could influence your credit status.

Although they do state it for me it's totally wrong. It's like they can say they offer help but that "help" can cause other issues.
Phone/internet have cheaper tariffs for those on certain benefits, should that be reported? or someone gets a discount with Sky, should that be reported?
To treat someone who might have never been in debt but is a low income the same and someone who might have raked up debt is disgraceful

Not really the same thing though. The phone/broadband are specifically priced tariffs offered by providers but only available to those who meet the qualifying criteria, The Big Difference Scheme is not a tariff, it's a scheme offered with the amount you pay determined by your circumstances.
I'll agree though that the ST website could be more explicit, along the lines of the Big Difference website, about the impact of using the scheme. Even though it mentions it being reported to credit reference agencies it just gives the impression it's targeted help aimed at reducing bills for those on a lower household income rather than what it actually is.

M25

Severn Trent Water may be doing this as a tax dodge as reporting it as some sort of unpaid debt either way it should be made very clear (and not just on a web page) to people taking the 'help' that their credit score will be affected.